{"id":448062,"date":"2020-11-12T12:00:18","date_gmt":"2020-11-12T10:00:18","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=448062"},"modified":"2020-11-12T12:00:18","modified_gmt":"2020-11-12T10:00:18","slug":"unions-want-r350-coronavirus-support-to-become-a-permanent-basic-income-grant-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/448062\/unions-want-r350-coronavirus-support-to-become-a-permanent-basic-income-grant-for-south-africa\/","title":{"rendered":"Unions want R350 coronavirus support to become a permanent basic income grant for South Africa"},"content":{"rendered":"<p>The Congress of South African Trade Unions (Cosatu) has welcomed the extension of government&#8217;s R350 unemployment grant, but says that the funding should be extended into a more permanent form of support.<\/p>\n<p>In a national address on Wednesday evening (11 November), president Cyril Ramaphosa announced that the special Covid-19 grant will be extended for a further three months, until January 2021.<\/p>\n<p>This will provide much-needed income to around six million people who are unemployed and do not receive any other form of government grant, the president said.<\/p>\n<p>However, Cosatu said that this grant should be extended &#8211; echoing previous calls for a permanent basic income grant in South Africa.<\/p>\n<p>&#8220;We welcome the extension of the R350 long term unemployment grant. But this should be extended beyond January and form the basis for a basic income grant,&#8221; the trade federation said.<\/p>\n<p>The ANC has previously said that it will also look at the feasibility of introducing a basic income grant as part of a series of outcomes decided upon by its National Executive Committee (NEC).<\/p>\n<p>According to a document seen by\u00a0<strong><a href=\"https:\/\/businesstech.co.za\/news\/business\/411375\/anc-considers-additional-tax-to-fund-a-r500-monthly-income-grant\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bloomberg<\/a><\/strong>, the ANC proposes paying a R500 monthly grant to those aged 19 to 59 &#8211; who aren\u2019t normally eligible for other aid &#8211; would cost the state R197.8 billion a year.<\/p>\n<p>Between 50% and 60% of the money could be recouped by levying extra taxes on those with jobs, it said.<\/p>\n<p>However, there are concerns that a permanent grant will have a significant impact on the country&#8217;s already strained fiscus.<\/p>\n<p>Intellidex analyst Peter Attard Montalto said that debate around a basic income grant has been ongoing for around 20 years, and has even been a subject of previous research, which found it could reduce poverty in the country by as much as 75%.<\/p>\n<p>However, the big problem is affordability, he said. Assuming the grant was R500 per month, as proposed by ANC policy makers, the maximum cost would be around R210 billion a year for the full age range, or starting at R77 billion for the narrower set of ages.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/446458\/3-alternative-taxes-proposed-for-south-africa-including-replacing-income-tax\/\" target=\"_blank\" rel=\"noopener noreferrer\">3 alternative taxes proposed for South Africa \u2013 including \u2018replacing\u2019 income tax<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Congress of South African Trade Unions (Cosatu) has welcomed the extension of government&#8217;s R350 unemployment grant, but says that the grant should be extended into a more permanent form of support.<\/p>\n","protected":false},"author":10,"featured_media":114832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[1470,26],"class_list":["post-448062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-cosatu","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/448062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=448062"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/448062\/revisions"}],"predecessor-version":[{"id":448074,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/448062\/revisions\/448074"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/114832"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=448062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=448062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=448062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}